Fraud detection in the fintech world has become a game of constant adaptation. As fintech continues to revolutionize the industry, so too do the tactics of fraudsters and the need for companies to be steps ahead of them. But, with the advent of automated fraud protection tools, financial institutions can now breathe a sigh of relief, as they have the power to stay ahead of the game and protect their customers’ assets like never before.
One of the latest fintech trends is the adoption of artificial intelligence (AI) solutions to solve different challenges, such as fraud detection. Let’s explore the power of automated fraud protection tools in the fintech sector and their role in keeping financial institutions and their customers safe in the ever-evolving landscape of finance.
Increased impact of fraud
Let’s face it, fraud is on the rise, and the fintech industry (its biggest target) is particularly vulnerable. In 2022 alone, payment attack fraud against fintech companies skyrocketed by 70%. The financial sector is a prime target for all manner of fraud attempts both amateur and professional.
How automation can eliminate cybersecurity risks
Automated fraud protection tools have several benefits in the fintech sector:
- They can speed up fraud detection, allowing financial institutions to provide fast, reliable services to their customers. Machine learning-based solutions personalize fintech fraud prevention tactics by understanding customers and their unique patterns, making it more difficult for fraudsters to bypass them.
- Smart fraud solutions minimize friction in the customer journey. Customers generally want to be protected from fraud and be able to use their accounts effortlessly. Strict fraud detection tools can add unnecessary friction to the customer experience. Automated fraud solutions using AI and machine learning minimize the risks of such friction. These solutions detect and prevent fraud in a manner that safeguards the customer experience.
Automation and 2-factor authentication
Automated fraud protection tools, combined with 2-factor authentication, provide an added layer of security for financial institutions. 2-factor authentication is a method of confirming a user’s claimed identity by utilizing a combination of two different components. This can include something the user knows (such as a password), a one-time passcode, something the user has (such as a smart card), or something the user has (such as a fingerprint).
Ensuring your automation provider gives you the security your institution needs
Selecting the right automation provider for your financial institution is crucial for ensuring the security of your data and compliance with industry regulations. It is essential that the provider has robust security measures in place such as data encryption, incident response plans, and compliance with industry standards like PCI-DSS and HIPAA.
IntelePeer is a trusted brand in automated fraud prevention solutions and has a track record to back it up. We offer little to no-code solutions for AI-driven and automated fraud detection. Whichever your workflow, our automated fraud detection communication tools can help you gather feedback, raise trouble tickets, and connect to self-service hotlines. Connect with us today to discover the best fraud protection solution for financial institutions.